After the Hilsenrath QE story, which broke in the last hour of yesterday’s equity session, gold has started its move. It’s up over $20 today breaking out of a symmetric triangle formation.

We believe is gold is driven primarily by the expansion of the global monetary base and moves on whiffs of further quantitative easing. The technicals look pretty good and with QE3 looking like a done deal, we like gold here. Could be wrong in this year of head fakes and always with a stop.